Apollo Energy publishes a daily energy market analysis, focusing on the gas, power and oil markets including a commentary on how the markets close and open. Our analysis provides insight on how the markets are performing and also considers various factors which could dictate price changes in the future.
The analysis also contains a graph which tracks the one-year forward price of both gas and electricity as well as changes to Brent crude oil.
Any movement on the gas curve was minor yesterday as the effects of weaker coal were offset by a slight rebound on the oil market. The near-curve was also slightly supported by on-going maintenance at Russia’s Nordstream pipeline which has restricted flows around Europe.
Gas prices were stable at the start of Monday’s session but eased down in the afternoon with direction coming from falling coal and oil markets. Bearish movement was evident across all European markets with the short-term supply/ demand outlook unchanged from the end of last week.
Gas prices climbed higher towards the end of Friday’s session as traders cashed in on their short positions in anticipation of a rebound in oil prices. However, a drop in coal limited the gains on the gas curve. In terms of supply, the system was balanced throughout the session as exports and demand levels increased.
Oil continued to act as the main market driver yesterday, following significant losses in the previous session which helped to weigh on contracts across the gas curve. Coal prices also inched down, while fundamentals were largely unchanged as the system remained long despite high exports and reduced flows from Norway.
Yesterday’s session was quite turbulent with early morning losses, a rebound in the afternoon and a sharp drop before the end of trading. The main driver of gas prices was the oil market, with news that Libya are set to ramp up production levels, resulting in the largest decrease in prices for two years.